DTE ENERGY COMPANY (DTE) Stock Fundamental Analysis
NYSE:DTE - New York Stock Exchange, Inc. - US2333311072 - Common Stock - Currency: USD
Taking everything into account, DTE scores 3 out of 10 in our fundamental rating. DTE was compared to 25 industry peers in the Multi-Utilities industry. There are concerns on the financial health of DTE while its profitability can be described as average. While showing a medium growth rate, DTE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DTE was profitable.
In the past year DTE had a positive cash flow from operations.
In the past 5 years DTE has always been profitable.
DTE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DTE (3.09%) is better than 80.00% of its industry peers.
With an excellent Return On Equity value of 12.86%, DTE belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
The Return On Invested Capital of DTE (4.32%) is better than 72.00% of its industry peers.
DTE had an Average Return On Invested Capital over the past 3 years of 4.42%. This is in line with the industry average of 3.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 12.86% | ||
| ROIC | 4.32% |
ROA(3y)2.84%
ROA(5y)2.76%
ROE(3y)11.66%
ROE(5y)11.27%
ROIC(3y)4.42%
ROIC(5y)4.29%
1.3 Margins
DTE's Profit Margin of 11.23% is on the low side compared to the rest of the industry. DTE is outperformed by 72.00% of its industry peers.
DTE's Profit Margin has improved in the last couple of years.
DTE has a worse Operating Margin (16.30%) than 96.00% of its industry peers.
In the last couple of years the Operating Margin of DTE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.3% | ||
| PM (TTM) | 11.23% | ||
| GM | N/A |
OM growth 3Y18.54%
OM growth 5Y4.53%
PM growth 3Y22.97%
PM growth 5Y4.07%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DTE is destroying value.
Compared to 1 year ago, DTE has more shares outstanding
The number of shares outstanding for DTE has been increased compared to 5 years ago.
DTE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.99, we must say that DTE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.99, DTE is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 1.87 is on the high side and indicates that DTE has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.87, DTE is doing worse than 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.99 |
ROIC/WACC0.49
WACC8.88%
2.3 Liquidity
DTE has a Current Ratio of 0.87. This is a bad value and indicates that DTE is not financially healthy enough and could expect problems in meeting its short term obligations.
DTE has a Current ratio (0.87) which is comparable to the rest of the industry.
DTE has a Quick Ratio of 0.87. This is a bad value and indicates that DTE is not financially healthy enough and could expect problems in meeting its short term obligations.
DTE has a worse Quick ratio (0.59) than 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
DTE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.60%, which is quite good.
DTE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.63% yearly.
DTE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.89%.
The Revenue has been decreasing by -0.34% on average over the past years.
EPS 1Y (TTM)19.6%
EPS 3Y-0.39%
EPS 5Y1.63%
EPS Q2Q%25.75%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y-5.93%
Revenue growth 5Y-0.34%
Sales Q2Q%37.04%
3.2 Future
The Earnings Per Share is expected to grow by 6.80% on average over the next years.
Based on estimates for the next years, DTE will show a small growth in Revenue. The Revenue will grow by 4.15% on average per year.
EPS Next Y6.57%
EPS Next 2Y6.93%
EPS Next 3Y7.15%
EPS Next 5Y6.8%
Revenue Next Year3.17%
Revenue Next 2Y3.07%
Revenue Next 3Y3.18%
Revenue Next 5Y4.15%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.17 indicates a rather expensive valuation of DTE.
Based on the Price/Earnings ratio, DTE is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.45. DTE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.90, the valuation of DTE can be described as correct.
DTE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. DTE is more expensive than 64.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, DTE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.17 | ||
| Fwd PE | 16.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DTE is valued a bit more expensive than 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DTE does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.76
PEG (5Y)11.16
EPS Next 2Y6.93%
EPS Next 3Y7.15%
5. Dividend
5.1 Amount
DTE has a Yearly Dividend Yield of 3.31%. Purely for dividend investing, there may be better candidates out there.
DTE's Dividend Yield is comparable with the industry average which is at 4.00.
Compared to an average S&P500 Dividend Yield of 2.42, DTE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
5.2 History
The dividend of DTE has a limited annual growth rate of 1.15%.
DTE has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of DTE decreased in the last 3 years.
Dividend Growth(5Y)1.15%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
53.82% of the earnings are spent on dividend by DTE. This is a bit on the high side, but may be sustainable.
The dividend of DTE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP53.82%
EPS Next 2Y6.93%
EPS Next 3Y7.15%
131.94
+1.26 (+0.96%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners79.2%
Inst Owner Change1.9%
Ins Owners0.34%
Ins Owner Change8.13%
Market Cap27.38B
Analysts76
Price Target145.15 (10.01%)
Short Float %1.98%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
Yearly Dividend3.92
Dividend Growth(5Y)1.15%
DP53.82%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.27%
Min EPS beat(2)4.17%
Max EPS beat(2)4.38%
EPS beat(4)4
Avg EPS beat(4)10.31%
Min EPS beat(4)4.17%
Max EPS beat(4)17.09%
EPS beat(8)5
Avg EPS beat(8)3.73%
EPS beat(12)8
Avg EPS beat(12)2.11%
EPS beat(16)11
Avg EPS beat(16)5.22%
Revenue beat(2)2
Avg Revenue beat(2)15.41%
Min Revenue beat(2)2.69%
Max Revenue beat(2)28.14%
Revenue beat(4)3
Avg Revenue beat(4)9.03%
Min Revenue beat(4)-3.52%
Max Revenue beat(4)28.14%
Revenue beat(8)3
Avg Revenue beat(8)-13.15%
Revenue beat(12)6
Avg Revenue beat(12)2.08%
Revenue beat(16)10
Avg Revenue beat(16)7.17%
PT rev (1m)0.38%
PT rev (3m)2.48%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)10.12%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.59%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.17 | ||
| Fwd PE | 16.9 | ||
| P/S | 2 | ||
| P/FCF | N/A | ||
| P/OCF | 7.56 | ||
| P/B | 2.3 | ||
| P/tB | 2.8 | ||
| EV/EBITDA | 12.56 |
EPS(TTM)7.26
EY5.5%
EPS(NY)7.81
Fwd EY5.92%
FCF(TTM)-3.22
FCFYN/A
OCF(TTM)17.45
OCFY13.22%
SpS65.81
BVpS57.45
TBVpS47.16
PEG (NY)2.76
PEG (5Y)11.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 12.86% | ||
| ROCE | 4.9% | ||
| ROIC | 4.32% | ||
| ROICexc | 4.33% | ||
| ROICexgc | 4.54% | ||
| OM | 16.3% | ||
| PM (TTM) | 11.23% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.84%
ROA(5y)2.76%
ROE(3y)11.66%
ROE(5y)11.27%
ROIC(3y)4.42%
ROIC(5y)4.29%
ROICexc(3y)4.42%
ROICexc(5y)4.3%
ROICexgc(3y)4.67%
ROICexgc(5y)4.61%
ROCE(3y)5.1%
ROCE(5y)4.92%
ROICexcg growth 3Y1.26%
ROICexcg growth 5Y-0.35%
ROICexc growth 3Y1.83%
ROICexc growth 5Y1.34%
OM growth 3Y18.54%
OM growth 5Y4.53%
PM growth 3Y22.97%
PM growth 5Y4.07%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.59 | ||
| Cap/Depr | 243.56% | ||
| Cap/Sales | 31.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.82% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 0.99 |
F-Score7
WACC8.88%
ROIC/WACC0.49
Cap/Depr(3y)244.33%
Cap/Depr(5y)251.76%
Cap/Sales(3y)28.1%
Cap/Sales(5y)28.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.6%
EPS 3Y-0.39%
EPS 5Y1.63%
EPS Q2Q%25.75%
EPS Next Y6.57%
EPS Next 2Y6.93%
EPS Next 3Y7.15%
EPS Next 5Y6.8%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y-5.93%
Revenue growth 5Y-0.34%
Sales Q2Q%37.04%
Revenue Next Year3.17%
Revenue Next 2Y3.07%
Revenue Next 3Y3.18%
Revenue Next 5Y4.15%
EBIT growth 1Y4.8%
EBIT growth 3Y11.52%
EBIT growth 5Y4.18%
EBIT Next Year92.37%
EBIT Next 3Y30.51%
EBIT Next 5Y22.13%
FCF growth 1Y54.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y73.01%
OCF growth 3Y5.9%
OCF growth 5Y6.58%